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- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By Kyle Brasseur2023-09-05T19:44:00
New York-based private equity firm Prime Group Holdings agreed to pay $20.6 million as part of a settlement with the Securities and Exchange Commission (SEC) resolving allegations it failed to adequately disclose it paid millions of dollars in fees to a real estate brokerage firm owned by its founder and chief executive officer.
Prime Group was fined $6.5 million and will pay approximately $11.5 million in disgorgement and $2.6 million in prejudgment interest, the SEC announced Tuesday in a press release. The firm is not registered with the SEC.
From 2017-21, Prime Group, through an investment fund to purchase self-storage real estate properties, paid real estate brokerage fees to an affiliated real estate brokerage firm wholly owned by its CEO, according to the SEC’s order. During the period, the brokerage firm allegedly received nearly $18 million in fees used to fund sourcing operations and compensate the members of deal teams comprised of Prime Group employees and independent contractors.
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News and analysis for the well-informed compliance or audit exec.
Annual Membership best value
Subscribe now for $365
Our lowest price ($1 per day) for one year.
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